A recent analysis from the cryptocurrency research platform CryptoQuant highlights a significant divergence within the Bitcoin market.
The findings reveal that internal demand for Bitcoin has diminished, primarily due to selling activities by both retail investors and major wallet holders. This situation has created a notable disconnect between market sentiment and actual capital movements.
Interestingly, while the Fear and Greed Index remains low, fluctuating between 8 and 14—indicating a state of “extreme fear”—the month of March saw net inflows exceeding $1 billion into spot Bitcoin ETFs. Conversely, the Coinbase Premium Index, which measures institutional interest in the U.S., stayed negative, pointing to minimal engagement from American investors. The ongoing geopolitical uncertainties, especially related to Iran, have prompted a cautious stance among traders; this suggests that recent sell-offs are not driven by panic but reflect a gradual decline in demand.
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Despite experiencing an approximate 47% drop from its all-time high of $126,000 reached in October 2025, this decrease appears relatively moderate compared to previous cycles where declines exceeded 85%. Analyst Zack Wainwright noted that this trend indicates an evolution towards greater maturity within the Bitcoin market alongside decreasing volatility over time.
A key potential driver for future market support is Morgan Stanley’s endorsement of a low-fee Bitcoin ETF. This initiative could unlock access to around $6.2 trillion in assets through approximately 16,000 financial advisors. Additionally, Strategy’s ongoing acquisition of about 44,000 BTC monthly via its preferred equity product is viewed as another crucial element likely contributing consistent demand into the marketplace.
Short-term technical indicators suggest that should geopolitical tensions subside; there exists potential for Bitcoin’s price recovery towards levels ranging between $71,500 and $81,200.
*This does not constitute investment advice.